Coles denies standover tactics claims made by the Australian Competition and Consumer Commission

COLES has denied explosive claims by the ACCC that it employed standover tactics against small suppliers and threatened to cut their products.

John Rolfe Cost of Living Editor

News Corp AustraliaJune 30, 201411:00pm

Fighting back ... Coles has filed a defence to the claims made by the ACCC.Source:News Limited

COLES has denied explosive claims by the consumer cops that it employed standover tactics against suppliers.

In responding for the first time to Federal Court action brought by the Australian Competition and Consumer Commission in May, the supermarket chain last night said it had filed a defence in which it “categorically rejected allegations by the ACCC in relation to the company’s Active Retail Collaboration (ARC) program with its suppliers”.

The ACCC has claimed Coles threatened to boot products such as Guylian chocolates and Orange Power cleaners from its shelves unless some 200 smaller suppliers paid rebates that had no legitimate basis.

According to the ACCC’s statement of claim, smaller suppliers were to pay Coles 1 per cent of the cost of groceries supplied. The initial goal was to raise $30 million. Later this was cut to $16 million.

If a Coles staffer could not get a rebate agreement, options included “threatening the supplier” by refusing to buy any more groceries or to cut “poor-performing” products.

However, last night Coles said: “Participation in the ARC program was at all times voluntary. Coles consulted with (smaller) suppliers regarding the value of the expected benefits of the ARC Program and responded to supplier queries concerning those benefits.

“Coles maintained trading relationships with suppliers irrespective of whether or not they decided to participate in the program,” it said, adding that while 32 of the 200 suppliers did not agree to participate in the program, “Coles continues a trading relationship with each of those suppliers”.

Coles’s defence was not available from the court and Coles said it could not be provided to the media.